Investing.com - Natural gas futures swung between small gains and losses during U.S. morning hours on Tuesday, as market players continued to monitor shifting weather forecasts for the rest of the month.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.283 per million British thermal units during U.S. morning trade, up a modest 0.1% on the day.
The March contract held in between a range of USD3.267 per million British thermal units, the daily low and a session high of USD3.312.
Updated weather forecast models continued to call for mild temperatures in the key Northeast and Midwest markets in the next three-to-five days, dampening near-term demand expectations for the heating fuel.
However, extended forecasts showed below-normal readings were expected for most of the nation from February 16 to February 20.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on winter heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
The heating fuel has lost nearly 10% since rallying to two-month high of USD3.644 per million British thermal units on January 21, after updated weather forecast models pointed to mostly mild temperatures for mid-February.
Natural gas prices fell to a five-week low of USD3.207 per million British thermal units on Monday.
Market participants have warned of additional downside to prices, as the coldest part of the winter has effectively passed and below-normal temperatures in February and March mean less than they do in January.
Concerns over bloated U.S. inventory levels also weighed. Total U.S. natural gas storage stood at 2.684 trillion cubic feet as of last week, 15% above the five-year average for this time of year.
Early withdrawal estimates for this Thursday’s storage data range from 128 billion cubic feet to 180 billion cubic feet. Inventories fell by 113 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 154 billion cubic feet.
If withdrawals for the rest of winter season match the five-year average pace, inventories will end the heating season at 2.079 trillion cubic feet, nearly 20% above normal, but 16% below last year's end-winter record of 2.48 trillion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March added 0.5% to trade at USD97.53 a barrel, while heating oil for March delivery dipped 0.2% to trade at USD3.225 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.283 per million British thermal units during U.S. morning trade, up a modest 0.1% on the day.
The March contract held in between a range of USD3.267 per million British thermal units, the daily low and a session high of USD3.312.
Updated weather forecast models continued to call for mild temperatures in the key Northeast and Midwest markets in the next three-to-five days, dampening near-term demand expectations for the heating fuel.
However, extended forecasts showed below-normal readings were expected for most of the nation from February 16 to February 20.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on winter heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
The heating fuel has lost nearly 10% since rallying to two-month high of USD3.644 per million British thermal units on January 21, after updated weather forecast models pointed to mostly mild temperatures for mid-February.
Natural gas prices fell to a five-week low of USD3.207 per million British thermal units on Monday.
Market participants have warned of additional downside to prices, as the coldest part of the winter has effectively passed and below-normal temperatures in February and March mean less than they do in January.
Concerns over bloated U.S. inventory levels also weighed. Total U.S. natural gas storage stood at 2.684 trillion cubic feet as of last week, 15% above the five-year average for this time of year.
Early withdrawal estimates for this Thursday’s storage data range from 128 billion cubic feet to 180 billion cubic feet. Inventories fell by 113 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 154 billion cubic feet.
If withdrawals for the rest of winter season match the five-year average pace, inventories will end the heating season at 2.079 trillion cubic feet, nearly 20% above normal, but 16% below last year's end-winter record of 2.48 trillion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March added 0.5% to trade at USD97.53 a barrel, while heating oil for March delivery dipped 0.2% to trade at USD3.225 per gallon.